Why Are Regulatory-Compliant Exchanges Necessary for Institutional Capital Inflows?

Regulatory-compliant exchanges are necessary for institutional capital inflows because large financial players can only enter environments that meet strict legal and operational standards. Institutions manage billions of dollars and must follow regulated frameworks that ensure safety, transparency, and proper reporting. When an exchange proves that it follows global rules, institutions gain confidence that their assets will be protected and handled professionally. Compliance reduces risk, increases trust, and helps unlock long-term liquidity that strengthens the entire crypto ecosystem.